International business 7th edition wild test bank

International Business: The Challenges of Globalization, 7e (Wild)
Chapter 2 Cross-Cultural Business
1) The first step in analyzing a nation's potential for international business activity is to examine
its business climate.
Answer: TRUE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 1
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
2) Ethnocentricity facilitates the establishment of new businesses abroad.
Answer: FALSE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 1
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
3) Subcultures mimic the values, preferences, and beliefs of dominant cultures.
Answer: FALSE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 1
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
4) Subcultures do not exist in democratic countries with large populations.
Answer: FALSE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 1
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

5) Hispanics comprise a subculture in the United States.
Answer: TRUE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 1
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

1
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6) Subcultures contribute very little to national culture and can be safely ignored when making
marketing and production decisions.
Answer: FALSE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 1
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
7) A nation's cultural boundaries do not always correspond with its political boundaries.
Answer: TRUE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 1
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
8) Subcultures exist only within a nation's borders.
Answer: FALSE
AACSB: Multicultural and diversity understanding

Skill: Concept
Objective: 1
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
9) Low levels of class consciousness encourage social mobility and lessen conflict.
Answer: TRUE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
10) The cultural component that deals with elements of imagery and symbolism is known as
material culture.
Answer: FALSE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 2
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

2
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11) A culture's values tend to become more flexible over time.
Answer: FALSE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 2
Difficulty: Easy

Course LO: Explain how differences in culture affect the international business environment
12) Folk customs that spread by cultural diffusion to other regions develop into popular customs.
Answer: TRUE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
13) A nuclear family comprises of one's immediate family, along with grandparents, uncles,
aunts, and cousins.
Answer: FALSE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
14) Social status is determined by family heritage, income, and occupation.
Answer: TRUE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
15) Religion is confined to national political boundaries.
Answer: FALSE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

3
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16) When going global with an Internet presence, it is highly beneficial for a business to localize
its Web site.
Answer: TRUE
AACSB: Use of information technology
Skill: Concept
Objective: 3
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
17) Literacy tests offer a reliable basis on which one nation's educational level can be compared
with another.
Answer: FALSE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
18) Nations that invest in worker training programs are usually rewarded with an increase in
productivity and a rise in income.
Answer: TRUE
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 3
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
19) Brain drain is the departure of highly educated people from one profession, geographic

region, or nation to another.
Answer: TRUE
AACSB: Analytic skills; Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
20) Cultures isolated by topographical barriers are characterized by slower cultural change.
Answer: TRUE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 4
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment

4
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21) Material culture often displays uneven development across a nation's industries.
Answer: TRUE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 4
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
22) Businesspeople measure material culture to determine whether a market can support
production activities.
Answer: TRUE
AACSB: Multicultural and diversity understanding

Skill: Concept
Objective: 4
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
23) People in collectivistic cultures are given freedom to focus on personal goals.
Answer: FALSE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 5
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
24) A culture with small power distance tends to be characterized by considerable inequality
between superiors and subordinates.
Answer: FALSE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 5
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
25) Cultures that score low on uncertainty avoidance tend to be less open to change and new
ideas.
Answer: FALSE
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 5
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment

5
Copyright © 2014 Pearson Education, Inc.

26) Which of the following terms is defined as the set of values, beliefs, rules, and institutions
held by a specific group of people?
A) law
B) philosophy
C) culture
D) science
Answer: C
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 1
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
27) Ethnocentricity can be defined as the ________.
A) scientific description of individual human societies
B) systematic study of an ethnic group's religious core
C) merging of all ethnic practices into one homogeneous culture
D) belief that one's own ethnic group or culture is superior to that of others
Answer: D
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 1
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
28) Detailed knowledge about a culture that enables people to work happily and effectively
within it is called ________.
A) cultural literacy
B) cultural imperialism
C) cultural diffusion

D) cultural divergence
Answer: A
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 1
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

6
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29) Bob is a journalist who intends to spend the next five months exploring Konesia. In order to
be able to fit in with the locals, he studies their culture in detail. He familiarizes himself with
their tastes and preferences, takes note of their taboos, and memorizes many of their sayings and
phrases. Which of the following terms best describes his actions?
A) material culture
B) popular culture
C) cultural imperialism
D) cultural literacy
Answer: D
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 1
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment
30) Which of the following is defined as a group of people who share a unique way of life within
a larger, dominant culture?
A) macroculture
B) subculture

C) cultural universal
D) monoculture
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 1
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
31) The Toro-Hessians are a minority group in the Margoza Archipelago, with a set of
preferences, attitudes, and taboos, distinct from that of the national culture. Therefore, they are
often overlooked when foreign businesses choose to customize their products for the inhabitants
of the islands. The Toro-Hessian community is an example of ________.
A) cultural universal
B) monoculture
C) subculture
D) stratification
Answer: C
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 1
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment

7
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32) Which of the following is a cultural component that implies gauging the beauty and appeal of
artwork?
A) customs

B) mores
C) folkways
D) aesthetics
Answer: D
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 2
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
33) Which of the following terms is used to refer to the ideas, beliefs, and customs to which
people are emotionally attached?
A) attitudes
B) memetics
C) aesthetics
D) values
Answer: D
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 2
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
34) Which of the following terms is used to refer to the positive or negative evaluations, feelings,
and tendencies that individuals harbor toward objects or concepts?
A) customs
B) attitudes
C) traditions
D) values
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Concept

Objective: 2
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

8
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35) Which of the following statements is true of attitudes?
A) Over the years, they become more rigid than values.
B) They are learned from role models.
C) Because they're formed within a cultural context, they mirror the attitudes of surrounding
countries.
D) They are developed only for the most important aspects of life.
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 2
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
36) A(n) ________ is anything that represents a culture's way of life, including gestures, material
objects, traditions, and concepts.
A) social structure
B) social status
C) cultural baggage
D) cultural trait
Answer: D
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 2

Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
37) ________ is increasing the pace of both cultural diffusion and cultural change.
A) Collectivism
B) Enculturation
C) Fundamentalism
D) Globalization
Answer: D
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

9
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38) Which of the following refers to the process by which cultural traits spread from one culture
to another?
A) cultural heterogeneity
B) cultural imperialism
C) cultural diffusion
D) cultural literacy
Answer: C
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

39) Cultural change occurs when people integrate into their culture the gestures, material objects,
traditions, or concepts of another culture through ________.
A) ethnocentricism
B) cultural diffusion
C) social stratification
D) xenocentrism
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
40) The practice of exchanging rings at weddings, which was initially a pagan ritual, is now
followed by most people across the world. Which of the following does this illustrate?
A) cultural literacy
B) cultural encoding
C) cultural diffusion
D) cultural lag
Answer: C
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 3
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment

10
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41) ________ facilitate(s) the process of cultural imperialism.

A) Strict product liability laws
B) Relaxed trade and investment barriers
C) Technological stagnation
D) Social media censorship
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
42) ________ refers to the replacement of one culture's traditions, folk heroes, and artifacts with
equivalents from another.
A) Cultural imperialism
B) Social stratification
C) Cultural encoding
D) Social conditioning
Answer: A
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
43) The sale of Hollywood movies in Konesia has doubled in the last five years while those of
locally-produced movies has fallen. In addition to this, sociologists have noted that currently, the
teenagers of Konesia are less inclined to don their traditional costumes, preferring to adopt
Western clothes instead. These changing trends illustrate ________.
A) cultural imperialism
B) cultural universal
C) cultural retention
D) cultural elitism

Answer: A
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 3
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment

11
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44) ________ is a system in which a supervisor walks an employee through every step of an
assignment or task, monitoring the results at each stage.
A) Situational attribution
B) Situational management
C) Social mobility
D) Social stratification
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
45) Which of the following terms is used to refer to habits or ways of behaving in specific
circumstances that are passed down through generations?
A) customs
B) attitudes
C) prejudices
D) aesthetics
Answer: A

AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 2
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
46) A folk custom can be defined as ________.
A) behavior shared by a heterogeneous group or by several groups of people
B) behavior, often dating back several generations, that is practiced by a homogeneous group of
people
C) positive or negative evaluations, feelings, and tendencies that individuals harbor toward
objects or concepts
D) positive or negative evaluations, feelings, and tendencies that individuals harbor toward
themselves
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 2
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

12
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47) Folk customs that spread by cultural diffusion to other regions develop into ________.
A) trash culture
B) traditions
C) popular customs
D) superstitions
Answer: C

AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 2
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
48) The practice by which managers and other employees find jobs within their own companies
for relatives is known as ________.
A) ethnocentricism
B) enculturation
C) nepotism
D) stratification
Answer: C
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
49) Nepotism often prevails in ________ cultures.
A) extended-family
B) individualistic
C) monotheistic
D) nuclear family
Answer: A
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

13

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50) ________ refers to socially learned traits associated with, and expected of, men or women.
A) Conformity
B) Social mobility
C) Individualism
D) Gender
Answer: D
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 2
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
51) Which of the following terms is used to refer to the process of ranking people into social
layers or classes?
A) social transformation
B) social stratification
C) social loafing
D) social mobility
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
52) ________ tend to occupy the highest social layer in industrialized countries.
A) Teachers
B) Scientists
C) Medical doctors

D) Business leaders
Answer: D
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

14
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53) ________ refers to the ease with which individuals can move up or down a culture's social
ladder.
A) Social standing
B) Social mobility
C) Social inertia
D) Social loafing
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
54) A caste system is a system of social stratification in which ________.
A) a person's social status is decided by his acquired wealth
B) a person's position in society depends upon his educational qualifications and achievements
C) people are born into a social ranking, with no opportunity for social mobility
D) people join highly exclusive associations that encourage external interaction
Answer: C

AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
55) Mika finds that he has very little control over several aspects of his life. Whether his
education or occupation, the few options available to him are determined by his birth. Which of
the following is a characteristic of Mika's society?
A) There is no distinction between the people of high and low birth in Mika's culture.
B) Mika belongs to a society in which there is little scope for mobility.
C) Mika belongs to a society in which economic wealth determines social status.
D) Mika belongs to a society in which caste system and social status is a myth.
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 2
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment

15
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56) A class system is a system of social stratification in which ________.
A) people are divided into various political groups and subgroups
B) a person's social rank depends upon his/her parentage
C) people join highly exclusive associations that forbid external interaction
D) personal ability and actions determine an individual's social status and mobility
Answer: D
AACSB: Multicultural and diversity understanding

Skill: Concept
Objective: 3
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
57) Which of the following is the most common form of social stratification in the world today?
A) racial segregation
B) class system
C) gender-based division
D) language-based stratification
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 2
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
58) The ________ played a major role in the development of capitalism and free enterprise in
nineteenth-century Europe.
A) pillars of Islam
B) Shinto doctrine
C) Protestant work ethic
D) tenets of Judaism
Answer: C
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

16
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59) ________ is crucial in production facilities where nonnative managers supervise local
employees.
A) Ethnocentricism
B) Language proficiency
C) Cultural isolation
D) Individualism
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
60) Lingua franca is ________.
A) a language spoken by all countries in a continent
B) a form of non-verbal language adopted by all nations as the official language for business
transactions
C) a unique language developed by Asian countries
D) a "link" language understood by two parties who speak different native languages
Answer: D
AACSB: Communication abilities
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
61) Which of the following terms is used to refer to the departure of highly educated people from
one profession, geographic region, or nation to another?
A) social mobility
B) repatriation

C) stratification
D) brain drain
Answer: D
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 3
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

17
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62) Over the last ten years, nearly 90% of medical graduates from Konesia have left the country
for higher-paying jobs in the United States. What phenomenon has Konesia been witnessing?
A) vested outsourcing
B) brain drain
C) redeployment
D) repatriation
Answer: B
AACSB: Analytic skills
Skill: Application
Objective: 3
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment
63) Reverse brain drain is the process by which ________.
A) manual laborers migrate from low-income countries to high-income countries
B) former communist nations lure professionals back to their homeland
C) students from Europe choose to enroll themselves in American universities
D) companies in high-income countries hire people from low-income countries to fill whitecollar positions

Answer: B
AACSB: Dynamics of the global economy
Skill: Concept
Objective: 3
Difficulty: Moderate
Course LO: Explain how differences in culture affect the international business environment
64) Konesia is a country with a number of offshore islands. Its landscape is characterized by
deep valleys, rocky plains, and impassable mountains. Which of the following statements about
the country is true, keeping its topography in mind?
A) Konesia is the ideal place to set up production facilities for multinational companies.
B) Konesia experiences a slow rate of cultural change.
C) Konesia is a receptive market for foreign automobile companies.
D) Konesia is greatly susceptible to cultural imperialism.
Answer: B
AACSB: Analytic skills
Skill: Application
Objective: 4
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment

18
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65) Which of the following terms refers to the technology used in a culture to manufacture goods
and provide services?
A) vernacular culture
B) popular culture
C) trash culture
D) material culture

Answer: D
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 4
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
66) ________ is often used to measure the technological advancement of a nation's markets or
industries.
A) Material culture
B) Popular culture
C) Trash culture
D) Vernacular culture
Answer: A
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 4
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
67) ________ cultures value hard work and promote entrepreneurial risk taking.
A) Short-term oriented
B) High uncertainty avoidance
C) Individualist
D) Collectivist
Answer: C
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 5
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

19
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68) Andy comes from a culture that emphasizes hard work and promotes the entrepreneurial
spirit within individuals. While he and his coworkers are encouraged to achieve their personal
goals, they are also held responsible for their actions. According to Hofstede's framework, which
of the following dimensions does this culture illustrate?
A) feminity
B) individualism
C) high power distance
D) high uncertainty avoidance
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 5
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment
69) According to Hofstede's framework, which of the following dimensions describes the degree
to which a culture accepts social inequality among its people?
A) power distance
B) uncertainty avoidance
C) individualism
D) collectivism
Answer: A
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 5
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

70) According to Hofstede's framework, organizations which have cultures that score high on
________ tend to be more hierarchical, with power deriving from prestige, force, and
inheritance.
A) uncertainty avoidance
B) power distance
C) short-term orientation
D) femininity
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 5
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

20
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71) According to Hofstede's framework, a culture with large power distance tends to be
characterized by ________.
A) inequality between superiors and subordinates
B) the absence of any form of hierarchy
C) power derived from hard work and entrepreneurial drive
D) a preference for individualism over collectivism
Answer: A
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 5
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

72) Sally, a social worker from the United States, has been stationed in Konesia for a year. She
notices several things about the Konesian society; the people who report to her, for example, do
so with an excessive amount of submissiveness, and her superior seems to expect the same of
her. Which of the following statements about Konesia would be consistent with Hofstede's
framework?
A) Konesians work best in an informal environment.
B) Konesia has a large power distance culture.
C) Konesian society is primarily individualistic.
D) Konesians derive power from their entrepreneurial drive.
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 5
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment
73) According to Hofstede's framework, a culture with ________ values security and places its
faith in strong systems of rules and procedures in society.
A) large uncertainty avoidance
B) low power distance
C) short-term orientation
D) high individualism
Answer: A
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 5
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

21
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74) According to Hofstede's framework, cultures scoring high on the dimension of ________
tend to be characterized by personal assertiveness and the accumulation of wealth, typically
translating into an entrepreneurial drive.
A) power distance
B) collectivism
C) uncertainty avoidance
D) masculinity
Answer: D
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 5
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
75) According to Hofstede's framework, cultures scoring high on the dimension of ________
generally have more relaxed lifestyles in which people are more concerned about caring for
others as opposed to material gain.
A) feminity
B) ethnocentricity
C) imperialism
D) individualism
Answer: A
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 5
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
76) According to Hofstede's framework, cultures that score high on ________ value respect for
tradition, thrift, and perseverance, and have strong work ethics.

A) power distance
B) masculinity
C) uncertainty avoidance
D) long-term orientation
Answer: D
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 5
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment

22
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77) According to Hofstede's framework, a culture that scores low on ________ is characterized
by individual stability and reputation, fulfilling social obligations, and reciprocation of greetings
and gifts.
A) collectivism
B) uncertainty avoidance
C) long-term orientation
D) feminity
Answer: C
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 5
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
78) According to Hofstede's framework, a culture that scores low on ________ can change more
rapidly because tradition and commitment are not impediments to change.

A) masculinity
B) individualism
C) long-term orientation
D) risk-taking
Answer: C
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 5
Difficulty: Easy
Course LO: Explain how differences in culture affect the international business environment
Scenario: The French Government
The French Government has placed many restrictions upon the use of the English language
within their borders. They argue that the inflow of English movies, music, and literature is
responsible for the dilution of their rich culture.
79) Which of the following statements, if true, strengthens their argument?
A) The Education Board of France has made it mandatory for schools to teach students English
as a second language.
B) The sales of English novels have risen sharply, while those of French novels have declined to
a corresponding extent.
C) Stores now advertise their presence with two placards; one in English and one in French.
D) French fashions are no longer popular in English speaking countries.
Answer: B
AACSB: Reflective thinking skills
Skill: Critical Thinking
Objective: 3
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment

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Copyright © 2014 Pearson Education, Inc.

80) Which of the following statements, if true, weakens their argument?
A) Hollywood movies star French actors very often.
B) English novels are more expensive than French novels.
C) Contemporary French artists have failed to come up with original songs.
D) A larger number of children are being given English names than traditional French names.
Answer: C
AACSB: Reflective thinking skills
Skill: Critical Thinking
Objective: 3
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment
81) Upon what assumption does their argument rest?
They argument assumes that ________.
A) the people of France prefer English music and movies to French music and movies
B) the people of France no longer speak French
C) the people of other countries aren't open to French cultural elements
D) Hollywood movies don't have French subtitles
Answer: A
AACSB: Reflective thinking skills
Skill: Critical Thinking
Objective: 3
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment
82) Their argument is vulnerable to criticism because ________.
A) most restaurants still display their menu cards in French
B) they fail to take other social and cultural factors into account
C) they do not distinguish between movies made by studios in England and movies made in
Hollywood

D) no other country screens French movies or star French actors
Answer: B
AACSB: Reflective thinking skills
Skill: Critical Thinking
Objective: 3
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment

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Copyright © 2014 Pearson Education, Inc.


83) Surveys conducted by a group of sociologists show that French children display more
familiarity with the superheroes of Hollywood movies than with the heroes of their traditional
folklore. The French Government can use this fact to prove the effect of ________ within their
country.
A) cultural imperialism
B) social stratification
C) ethnocentricism
D) racism
Answer: A
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 3
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment
84) The French Government promotes the concept of ________ by building museums and
monuments to preserve the legacies of important events and people.
A) subculture
B) national culture

C) popular culture
D) monoculture
Answer: B
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 1
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment
Scenario: Frankfurter Friday
Betty Cleveland is the vice president of Frankfurter Friday, a highly successful hot dog joint in
Oceania. Her company decides to expand to Asia and identifies China as the ideal market.
Before she leaves for China, she studies their culture extensively and discovers that the number
four is considered extremely unlucky, that not everybody is fluent in China's official language–
Mandarin–and that punctuality is a highly valued trait in the country.
85) Which of the following terms describes Betty's effort to learn more about the Chinese
culture?
A) cultural literacy
B) cultural imperialism
C) cultural divergence
D) cultural heterogeneity
Answer: A
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 1
Difficulty: Hard
Course LO: Explain how differences in culture affect the international business environment
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Copyright © 2014 Pearson Education, Inc.